Help me decide on a new 5.1 setup

Got a new 80" Sharp and I think its time to upgrade my audio system as well. Complete newb, especially when it comes to audio.

Budget - About $3500
Mostly watch TV and/or blurays. Some gaming.

Room layout is open floor plan with 12ft ceilings. TV is mounted on the wall and the sofa it about 12 - 15ft out.

Rear speakers will have to be in-ceiling.

Always have had Polk, so that's the only company I've been used to.

Thinking about going with RTiA7 or TSi500 for Right and Left.
255c-LS for center
70-Rt or 50-RT for in ceiling.
DSWPro440wi for sub.

Or is there better bang for the buck out there? My dad has an Energy system set up and I like that too.

Receive I'm thinking Pioneer Elite SC63- or SC61.

I don't need multi zone.

Am I over spending since this is not technically a theater room? Can I downgrade on the any of the speakers or the receiver?

Room is probably about 400 - 500 sqft.

If the rear are in ceiling, should I skip them all together and go with a 3.1?

The space is open to the dining and kitchen.

Ceiling speakers necessary because there is no wall behind the sofa. I don't want to do speakers in the middle of the room.

I'll post pics and dimensions once I get home today.

Here is a pic:



Living room with dining behind is about 500 sqft. Sofa is exactly 15ft. from the tv.

Actually its 12" ceilings. Thanks for the advice!